plug power reports largest revenue quarter in the company
TRANSCRIPT
Plug Power Reports Largest Revenue Quarter in the Company’s History
$144 Million in Q3 2021 Revenue, Up 34% Year over Year
Raising Revenue Guidance for 2022 given acquisitions and commercial traction
to $900 Million - $925 Million
Continued to Expand Green Hydrogen Generation Network Across North America while
Forming Strategic Partnerships in Europe and Asia Pacific
● Hosted 3rd Annual Plug Power Symposium: Attracting over 5,000 attendees and dozens of
global speakers, showcasing strategic priorities in green hydrogen ecosystem, market
expansion, gigafactory and establishing 2025 guidance of $3 billion in annual revenue
● Expansion of Green Hydrogen Generation network across North America: Announced
plans to build a 30 tons-per-day green hydrogen plant in Fresno, California which would be the
largest facility of its kind on the West Coast. This property joins our state-of-the-art green
hydrogen production facilities under development in Georgia, New York and other locations to
meet our goal of supplying 500 tons-per-day of liquid green hydrogen by 2025
● Material handling business remains robust: Already added five pedestal customers well
ahead of target with continued discussion to add more pedestal customers in both the US and
Europe
● Announced two joint ventures in Asia-Pacific: Finalized JV with SK E&S designed to
accelerate the use of hydrogen as an alternative energy source in Asian markets; announced
planned JV with Fortescue Future Industries to build a gigafactory in Queensland, Australia.
With SK JV, we expect to see meaningful growth in our stationary product business and this
product platform can be leveraged on a global basis for both stationary and data center
applications
● Announced Partnership with Lhyfe for the development of green hydrogen plants throughout
Europe and launched EU headquarters in Germany
● Announced initiatives to expand development of Green Hydrogen Infrastructure:
Including partnership with Phillips 66 and Airbus
● Unveiled the first HYVIA Hydrogen Renault Master Van, as part of a joint venture with
Renault Group to target 30% market share in hydrogen powered light commercial vehicles in
Europe by 2030
● Announced Two of the Largest Acquisitions to date: Signed definitive agreement to acquire
both Applied Cryo Technologies and Frames Group
Recap of the Third Quarter Financials
Plug Power shipped 4,559 GenDrive units and had revenue associated with 16 hydrogen
infrastructure systems for the third quarter 2021 compared to 3,709 GenDrive units and 13
hydrogen infrastructure systems in the third quarter 2020. Net revenue for this quarter was
$143.9 million compared to $107.0 million for the third quarter of 2020.
As highlighted in our second quarter investor letter, gross margin has remained under pressure
driven by multiple factors including elevated fuel, service, and product costs. Product and
service costs stem in part from the COVID-19 related impact to the global supply chain. The
COVID-19 related costs primarily stemmed from freight and material costs given the global
impact on the transit industry, and higher labor costs given staffing and coverage issues; We
expect these trends will continue into the year end of 2021 but begin to abate as the global
crisis subsides.
Given the continued service platform progression, we expect to see improvement in service
margin run rates materializing in 2022 with potential to reduce service costs on a per unit basis
by 30% in the next 12 months and 45% by the end of 2023. We also expect margin trends to
improve in our fuel business in 2022 with breakeven margin by 2023 as our green hydrogen
plants come on line in the second half of 2022. We expect fuel margin to be in line with overall
corporate target of >30% gross margin by 2024 as we see the full benefit of internal production
and continued build out of our green hydrogen generation network. In addition to these
initiatives, Plug continues to drive cost downs on its products, and we expect the recent
acquisitions will be gross margin accretive in 2022 stemming from both incremental sales and
synergies on existing products.
As highlighted in our last earnings call, margins in the fuel business continue to remain under
pressure in the near term, further reinforcing our strategy of vertical integration and building out
our green hydrogen generation network. While reported margin improved meaningfully on a
sequential basis in Q3 from Q2, gross margin in the fuel business was essentially flat over the
same time period, after excluding one-time charges from Q2. The sequentially flat margin was a
result of a decrease in average molecule costs of 5%, offset by increases in delivery costs
associated with us supporting customers’ mission critical applications by utilizing our high
pressure tube trailer fleet, as well as liquid tankers to pick up hydrogen from one of our key
suppliers. We worked closely with our key supplier to move hydrogen molecules from different
locations as they were going through planned outages in certain locations. As we have
consistently highlighted, key dynamics in the industry remain more of a logistics challenge,
rather than the availability of hydrogen molecules. In light of these industry dynamics, we have
continued to add more delivery assets (both gaseous and liquid) and drivers, with a core goal in
mind to never allow a customer to have disruption in its on-site operations. Our additional
delivery assets and resources help the entire liquid hydrogen industry, including our customers
and even our suppliers. In line with this strategic initiative, we recently announced that we
entered into a definitive agreement to acquire Applied Cryogenic Technologies, Inc., which is
expected to bolster and accelerate our delivery capabilities going forward.
This margin trend is expected to remain under pressure until the end of the year, largely
impacted by increases in natural gas prices. We are working with our key supplier to find a
mutually beneficial solution to navigate these market-based pricing pressures. We recently
completed our Tennessee plant expansion to 10 tons per day, which is over a 50% capacity
expansion. This expansion is expected to have a meaningful positive impact on costs in 2022
and beyond. The current pricing of grey hydrogen in the market, further highlights the
attractiveness of the pricing of our future green hydrogen offering. In addition, we expect our
first-of-a-kind, force majeure resilient green hydrogen generation and delivery network to help
the entire hydrogen industry manage through many force majeure events we have seen in
recent years. With recently added capacity by our key supplier in Texas and new capacity
coming online by another supplier in Nevada, we believe our ability to move hydrogen
molecules from their various locations will help support continued growth of fuel cell applications
well beyond 2022.
Looking forward to 2022, we expect a decrease in average molecule costs in Q1 vs Q4 ’21 of
5% and continued decline throughout the year with Q4 2022 hydrogen costs being over 20%
lower than Q4 2021. We expect fuel margins to break even by 2023 as we continue to work with
strategic suppliers and multiple green hydrogen plants come online. In addition, as we continue
to grow our logistics capabilities, this will help better manage delivery of hydrogen at our
customers sites which should see significant improvement in fuel efficiency. By 2024, we expect
our fuel business to start generating cash flow and approaching corporate margin targets with
potential for upside as we continue to expand our green hydrogen network.
On the service front, there are several key actions being implemented beginning in Q4 2021 to
improve the reliability of our fuel cell systems and service cost. These actions include retrofitting
high usage customer sites with our upgraded stack technology as well as implementing several
system power improvements to increase fuel cell stack life and software solutions across the
fleet that will ensure optimized operating conditions for our fuel cells.
The first near-term action will be to execute a one-time upgrade at 10 of the highest demand
sites to our latest system design. This retrofit will employ the same modern system architecture
and stack technology that is currently being utilized for our highest volume Gen Drive order
picker application manufactured for our 2021 and 2022 deployments. Released for production in
May 2020, this modern system architecture was designed to meet increasing demands of the
market and is currently operating at 92 sites with over 5 million operating hours of experience.
The technology has been field demonstrated to achieve more than 2X stack life, therefore
reducing service cost of parts and labor over the prior year's technology. In addition to the new
2021 sites, we have also retrofitted this technology in an operating site and have reduced the
service cost by over 50% over the last 18 months. It is expected that the retrofits will be
completed at the 10 locations by the end of Q2 2022. This upgrade will not only reduce our
costs to service the equipment but will further enhance the value of our offering by improving
customer throughput and productivity.
In addition to the system retrofit program, system power and software improvements are
planned for Q1 and Q2 for the fleet. These enhancements are expected to increase capacity
and life of GenDrive system components and will be designed to be drop-in replacements, or in
the case of software, to be remotely upgraded across the fleet. These fleetwide software
updates and component level enhancements will also be incorporated into our new unit 2022
build plans, further reducing overall cost-per-unit incurred in the field.
With these steps, Plug Power expects to reduce its services costs on a per-unit basis by 30% in
the next 12 months and by 45% by the end of 2023. In addition to the near-term activities, the
Plug Reliability and Platform Engineering team is continuously developing next generation
technology and improvements to meet customer needs and reduce lifecycle cost. Plug Power’s
unparalleled fleet operating experience in various applications in material handling, as well as
our focused effort on continuous technology enhancements, should reduce total cost of
ownership and achieve profitable growth beyond 2023. These will continue to improve our
customers' productivity, further supporting the change from lead acid batteries to Hydrogen Fuel
Cell technology.
Plug Power Expands North American Green Hydrogen
Supply Network to California
In the third quarter, we announced the location of Plug Power’s green hydrogen plant in
Fresno, California, the largest ever on the West Coast, with plans to produce 30 metric
tons of liquid green hydrogen daily and serve customers from San Diego to Vancouver.
The California plant joins the company’s growing national network of state-of-the-art green
hydrogen production facilities under development in:
● Camden County, GA, which is expected to produce 15 tons per day of liquid green
hydrogen using 100% renewable energy and serve customers in the southeastern
United States. It is expected to be on line in the summer of 2022
● Western New York, at the New York Science, Technology and Advanced Manufacturing
Park (STAMP) site. We expect this plant will be North America’s largest green hydrogen
production facility with an initial production of 45 metric tons per day of green liquid
hydrogen
The California green hydrogen plant announcement is in line with Plug Power’s previously
announced development roadmap, which targets having 500 tons per day of green hydrogen
generation capacity by 2025 and 1,000 tons per day globally by 2028. As previously highlighted
all four liquid green hydrogen plants are expected to be online by year-end 2022, including our
existing Tennessee plant. These new green hydrogen plants will become part of Plug Power’s
hydrogen supply network that we expect to grow to 13 plants by year-end 2025. We are on track
to build the first of its kind force-majeure resilient green hydrogen generation network in North
America with a core focus on making green hydrogen economical and ubiquitous.
Expanding Global Footprint to Asia Pacific
Immediately following the close of the third quarter, the company advanced plans for expansion
in Asia Pacific via two significant joint ventures. The first joint venture was with SK E&S, part of
South Korea’s SK Group, which will work alongside Plug Power in the years ahead to provide
hydrogen fuel cell systems, hydrogen fueling stations, electrolyzers and green hydrogen to the
Korean and other Asian markets. The JV plans to build a gigafactory in a key metropolitan area
in South Korea by 2024, with mass capacity for hydrogen fuel cells and electrolyzer systems.
Building on our Asia Pacific success, Plug Power also announced the planned 50-50 JV with
Fortescue Future Industries (FFI). As part of this agreement, the two companies plan to build a
gigafactory in Queensland, Australia to produce large-scale proton exchange membrane (PEM)
electrolyzers, with the ability to expand into fuel cell systems and other hydrogen-related
refueling and storage infrastructure in the future.
Building Europe’s Green Hydrogen Ecosystem
As part of Plug Power’s ambitious plan to replicate our North American success in Europe, we
announced a new European headquarters in the third quarter. This 70,000 square foot facility is
located in North Rhine-Westphalia in Germany and will house an innovation center with
engineering labs; a monitoring, diagnostics and technical support center; a green hydrogen
generator with an electrolyzer infrastructure; a shipping and logistics center; and finally, a
training space for Plug Power’s growing European staff.
Plug Power forged a partnership with Lhyfe, a producer and supplier of renewable and
ecological hydrogen, to jointly pursue and develop green hydrogen generation plants throughout
Europe. The initiative seeks to generate a total hydrogen capacity of 300MW by 2025 and to
start development of a 1GW production site.
The agreement between Plug Power and Lhyfe builds upon the working relationship already
established between the two companies earlier in 2021. Plug Power’s hydrogen electrolyzer
technology is expected to provide 1MW of capacity to the world’s first offshore hydrogen
production facility, developed by Lhyfe and powered by electricity from a floating wind turbine off
the coast of Le Croisic, at SEM-REV, Centrale Nantes’ offshore test site, which is expected to
be operational by 2022.
Plug Power and Acciona are in the final stages of incorporating the new Joint Venture entity and
expect all the standard procedural work to be completed in November 2021. Both parties are
already working on identifying sites to build two 15 tons-per-day plants over the next several
years.
Historic Partnership with Airbus
During the third quarter, Plug Power signed a historic partnership with Airbus to study the
feasibility of bringing green hydrogen to future aircraft and airports worldwide. Initial studies are
planned at an airport in the United States.
As part of its ambitious goal of bringing zero-emission aircraft to market by 2035, Airbus has
identified green hydrogen as one of the most promising options to decarbonize air travel and will
be working closely with Plug Power on a study and feasibility roadmap that could ultimately
deliver green hydrogen to aircraft and airport ecosystems throughout the world.
Expanding Green Hydrogen Partnership
Plug Power announced a collaboration with Phillips 66 (NYSE: PSX) to scale green
hydrogen throughout industrial and mobility sectors, while advancing development of key
hydrogen infrastructure and fueling capabilities. Phillips 66, which has 13 wholly owned and joint
venture refineries in the U.S. and Europe, owns extensive hydrogen-related infrastructure and
uses hydrogen in the manufacturing of transportation fuels.
As part of this agreement, the companies will explore ways to deploy Plug Power’s technology
within Phillips 66’s operations, leveraging Plug Power’s experience as a full value chain provider
within the hydrogen economy. Plug Power will benefit from Phillips 66’s capabilities as a
developer of large-scale energy infrastructure, operator of industrial-scale hydrogen production
facilities, and presence in the fuels marketing segment in the U.S. and Europe.
The companies’ memorandum of understanding provides a framework for working together on
three key objectives:
● integrating and scaling low-carbon hydrogen in the industrial sector;
● advancing hydrogen fueling opportunities for the mobility sector; and
● developing hydrogen-related infrastructure to support the build-out of the hydrogen value
chain.
Announced Definitive Agreement for Two Strategic Acquisitions:
Applied Cryo Technologies and Frames Group
Applied Cryo Tech. (ACT) is a leading provider of technology, equipment and services for the
transportation, storage and distribution of liquefied hydrogen, oxygen, argon, nitrogen and other
cryogenic gases. We expect the transaction to close by the end of November 2021.
The acquisition of ACT is expected to provide Plug Power with a host of efficiencies and
capabilities, helping drive the cost of hydrogen infrastructure and logistics network lower. These
include:
● liquid hydrogen delivery network and fleet;
● liquid hydrogen storage; and
● hydrogen mobility fueling, which is particularly important for ports.
Frames Group is a world leader in process and systems integration serving the energy sector.
The two companies began working together in 2017, when Frames Group acted as system
integrator to Plug Power’s stack technology for electrolysis.
With the acquisition, which is subject to customary conditions and is expected to be completed
by year-end 2021, Plug Power will expand its engineering and systems integration capabilities,
which will enable the company to deliver electrolyzer solutions of all sizes. Frames’ capabilities
in process and systems integrations – and their existing network of contract manufacturing and
suppliers – is expected to accelerate Plug’s ability to deliver safe, reliable and competitive
electrolyzer solutions globally.
As Plug Power continues to develop its electrolyzer solutions at scale, as well as large
stationary power solutions, it plans to leverage Frames’ experience in large-scale gas treatment
and separation, water treatment and purification. In addition to the complementary technology
fit, Frames’ strong customer relationships in the energy sector, both onshore and offshore, is
expected to increase Plug Power’s reach into a customer segment that is looking for partners
addressing the challenges of energy transition.
Through the acquisition of the Frames Group and its 300 employees, Plug Power is expected to
continue to increase its international footprint, particularly in Europe and India.
Summary of the 2021 Plug Symposium
Plug Power held its third annual Plug Symposium, “Here Comes Green Hydrogen”, virtually on
October 14, 2021. A video of the 2021 Plug Symposium can be found via this link, and the
Symposium slide deck is available on the company’s website here.
Plug Power set the tone for this powerful day of discussions by highlighting the fact that Plug
Power has successfully achieved our vision of creating the industry’s only complete, end-to-end
green hydrogen ecosystem, one that provides everything from hydrogen production, powered
by renewables, to storage and transportation. This ecosystem now extends across North
America and is making strong inroads in Europe and Asia Pacific.
Highlights from the 2021 Symposium include:
● Establishing long-term 2025 guidance of $3 billion in annual revenue
● Increasing 2022 revenue guidance; now $900-925 million, >80% growth over 2021
● Executing a definitive agreement to acquire Applied Cryo Technologies
● Announcing partnership with Fortescue Future Industries for a 50-50 joint venture to
build a gigafactory in Queensland, Australia
● Unveiling HyVia hydrogen fuel cell-powered van prototype in North America, highlighted
in remarks from Luca de Meo, CEO of Renault Group, Plug Power JV partner
● Confirming plan for 500 tons per day of liquid green hydrogen generation capacity by the
end of 2025, which will include installing 13 green hydrogen plants by the end of 2025
● Projecting ambitious electrolyzer sales of over 100 megawatts (MW) by 2022, which is
expected to generate 50 tons per day of green hydrogen
● Targeting three new markets with the ProGen Platform -- trucks, planes and data
centers – in the years ahead
● Visionaries from across the industry, who are collaborating with Plug Power, spoke
about the decarbonized future, including leaders from Microsoft, Acciona, Snam, FiveT
Hydrogen, Williams and Fortescue Metals Group
● Political leaders spoke to Plug Power’s important role in building a greener, cleaner
world, including Senator Chuck Schumer, Congressman Joe Morelli, Representative
Paul Tonko and EU Director General Mobility and Transportation Henrik Hololei
Green Hydrogen Horizons -- Looking Forward
Plug Power remains focused on, and is continuing to execute against, its four top priorities:
● Accelerate expansion in our green hydrogen generation business, as evidenced by the
development of multiple green hydrogen plants
● Successfully launch JVs with Renault, SK Group, Acciona and Fortescue Industries,
providing a global footprint as well as expanding our offerings into stationary and mobility
markets
● Continue to expand via partnerships, joint ventures, and acquisitions in the hydrogen
ecosystem, as evidenced by initiatives with Philips 66, Airbus and Lhyfe
● Expand customer relationships across all businesses with continued strong growth in the
material handling business to achieve $900M - $925M in revenues in 2022
Again, we would like to thank our employees for their hard work and look forward to updating
you all in the next call.
Be well,
Conference Call Information
A conference call will be held today, November 9, 2021.
● Time: 4:30 pm ET
● Toll-free: 800-942-2493; 212-271-4651
● Direct webcast: https://event.webcasts.com/starthere.jsp?ei=1510051&tp_key=525497cacf
The webcast can also be accessed directly from the Plug Power homepage
(www.plugpower.com). A playback of the call will be available online for a period following the
call.
About Plug Power Inc.
Plug Power is building the hydrogen economy as the leading provider of comprehensive hydrogen fuel
cell turnkey solutions. The Company’s innovative technology powers electric motors with hydrogen fuel
cells amid an ongoing paradigm shift in the power, energy, and transportation industries to address
climate change and energy security, while meeting sustainability goals.
Plug Power created the first commercially viable market for hydrogen fuel cell technology. As a result, the
Company has deployed over 50,000 fuel cell systems for e-mobility, more than anyone else in the world,
and has become the largest buyer of liquid hydrogen, having built and operated a hydrogen highway
across North America. Plug Power delivers a significant value proposition to end-customers, including
meaningful environmental benefits, efficiency gains, fast fueling, and lower operational costs.
Plug Power’s vertically-integrated GenKey solution ties together all critical elements to power, fuel, and
provide service to customers such as Amazon, BMW, Ikea, Carrefour, and Walmart. The Company is now
leveraging its know-how, modular product architecture and foundational customers to rapidly expand into
other key markets including zero-emission on-road vehicles, robotics, and data centers.
www.plugpower.com.
Cautionary Note on Forward-Looking Statements
This communication contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 that involve significant risks and uncertainties about Plug Power Inc. ("Plug"), including but not limited to statements about Plug's expectation regarding its revenue in 2022 and annual sales in 2025; expectation regarding its planned acquisitions of Applied Cryo Technologies and Frames Group, including the expected timing and benefits of such acquisitions; plans to accelerate the expansion in green hydrogen generation business with the development of multiple green hydrogen plants; plans to build a green hydrogen plant in California and expectation regarding the size of the facility and green hydrogen production; projections of over 100 MW of electrolyzer sales by 2022 and the expectation that it will generate 50 tons per day of green hydrogen; plans to produce 500 tons per day of liquid green hydrogen by 2025 and 1,000 tons per day by 2028, and to have four liquid green hydrogen plants online by end of 2022; plans to grow its hydrogen supply network to thirteen plants by end of 2025; plans to target three new markets with the ProGen Platform: trucks, planes and data centers; plans to add pedestal customers in the United State and Europe; expectation that its joint ventures with Renault, SK Group, Acciona and Fortescue Industries will be successful in providing a global footprint as well as expanding its offerings into stationary and mobility markets; plans to build a gigafactory in South Korea and Queensland, Australia; expectation regarding its planned partnerships with Lhyfe, Phillips 66 and Airbus; plans to expand into Europe with a partnership with Lhyfe and generate total hydrogen capacity of 300MW by 2025 and develop a 1GW production site, including the expectation that its hydrogen electrolyzer technology will provide 1 MW of capacity to the world’s first offshore hydrogen production facility powered by electricity from a floating wind turbine by 2022; plans to complete procedural work with Acconia by mid-November 2021 and identify sites to build two 15 tons per day plants; partnership with Airbus to bring zero-emission aircraft to market by 2035; collaboration with Phillips 66 and the expectation that it will benefit from Phillips 66’s capabilities to scale green hydrogen and advance development of infrastructure and fueling capabilities; expectation regarding targeting 30% of the market share in hydrogen powered light commercial vehicles in Europe by 2030; belief that trends in the transit industry and labor staffing and coverage issues will continue through 2021 but begin abating with the global crisis; expectation in improvement in service margin run rates and fuel business in 2022 and 2023; expectation that its recent acquisitions will be gross margin accretive in 2022; expectation that delivery logistics will remain under pressure through 2021; the expected impact of its expansion of the Tennessee plant and capacity, and its ability to support the growth of fuel cell applications; expectation regarding its green hydrogen generation and delivery network to help manage force majeure events; expectation of a decrease in average molecule costs and hydrogen costs; expectation that fuel margins will break even by 2023, fuel efficiency will improve with growing logistic capabilities and its fuel business will generate cash flow by 2024; plans to retrofit customer sites with upgraded stack technology and implement improvements to improve fuel cell systems and service cost, the expected timing of the retrofit completion and software improvements, and their expected impact, including a reduction in service costs in 2022 and 2023; expectation that its fleet operating experience in various applications in material handling and continuous technology enhancements will reduce total cost of ownership and achieve profitable growth; and plans to increase its international footprint in Europe and India. You are cautioned that such statements should not be read as a guarantee of future performance or results, and will not necessarily be accurate indications of the times that, or by which, such performance or results will have been achieved. Such statements are subject to risks
and uncertainties that could cause actual performance or results to differ materially from those expressed in these statements. For a further description of the risks and uncertainties that could cause actual results to differ from those expressed in these forward-looking statements, as well as risks relating to the business of Plug in general, see Plug’s public filings with the Securities and Exchange Commission, including the “Risk Factors” section of Plug’s Annual Report on Form 10-K for the year ended December 31, 2020 and Quarterly Reports on Form 10-Q for the quarters ended March 31, 2021, June 30, 2021 and September 30, 2021. Readers are cautioned not to place undue reliance on these forward-looking statements. The forward-looking statements are made as of the date hereof and are based on current expectations, estimates, forecasts and projections as well as the beliefs and assumptions of management. We disclaim any obligation to update forward-looking statements except as may be required by law.
Plug Power Investor Contact
Roberto Friedlander
Plug Power Media Contact
Caitlin Coffee Allison+Partners
(312) 635-8204
Assets
Current assets:
Cash and cash equivalents $ 3,371,962 $ 1,312,404
Restricted cash 90,688 64,041
Available-for-sale securities, at fair value
(amortized cost $756,841 and allowance for credit losses of $0 at September 30, 2021) 752,766 —
Equity securities 147,649 —
Accounts receivable 132,370 43,041
Inventory 229,814 139,386
Prepaid expenses and other current assets 62,746 44,324
Total current assets 4,787,995 1,603,196
Restricted cash 390,542 257,839
Property, plant, and equipment, net 169,586 74,549
Right of use assets related to finance leases, net 22,039 5,724
Right of use assets related to operating leases, net 167,907 117,016
Equipment related to power purchase agreements and fuel delivered to customers, net 78,711 75,807
Goodwill 71,856 72,387
Intangible assets, net 37,644 39,251
Other assets 13,820 5,513
Total assets $ 5,740,100 $ 2,251,282
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable $ 68,378 50,198
Accrued expenses 52,645 46,083
Deferred revenue 35,463 23,275
Operating lease liabilities 23,284 14,314
Finance lease liabilities 2,758 903
Finance obligations 35,595 32,717
Current portion of long-term debt 23,491 25,389
Other current liabilities 28,329 29,487
Total current liabilities 269,943 222,366
Deferred revenue 63,402 32,944
Operating lease liabilities 139,400 99,624
Finance lease liabilities 17,027 4,493
Finance obligations 172,242 148,836
Convertible senior notes, net 192,320 85,640
Long-term debt 123,764 150,013
Other liabilities 55,113 40,447
Total liabilities 1,033,211 784,363
Stockholders’ equity:
Common stock, $0.01 par value per share; 1,500,000,000 shares authorized; Issued (including shares in
treasury): 593,077,995 at September 30, 2021 and 473,977,469 at December 31, 2020 5,930 4,740
Additional paid-in capital 6,978,454 3,446,650
Accumulated other comprehensive (loss) gain (2,338) 2,451
Accumulated deficit (2,203,989) (1,946,488)
Less common stock in treasury: 17,032,648 at September 30, 2021 and 15,926,068 at December 31, 2020 (71,168) (40,434)
Total stockholders’ equity 4,706,889 1,466,919
Total liabilities and stockholders’ equity 5,740,100 2,251,282
2021 2020
Plug Power Inc. and Subsidiaries
Consolidated Balance Sheets
(In thousands, except share and per share amounts)
(Unaudited)
September 30, December 31,
Net revenue:
Sales of fuel cell systems and related infrastructure $ 115,999 $ 83,662 $ 262,049 $ 151,876
Services performed on fuel cell systems and related infrastructure 6,677 6,829 18,397 19,586
Power Purchase Agreements 9,321 6,629 25,508 19,629
Fuel delivered to customers 11,556 9,831 33,804 24,536
Other 369 97 679 235
Net revenue 143,922 107,048 340,437 215,862
Cost of revenue:
Sales of fuel cell systems and related infrastructure 89,235 69,428 198,122 117,290
Services performed on fuel cell systems and related infrastructure 18,697 9,180 47,258 27,300
Provision for loss contracts related to service 7,462 25,147 15,641 25,948
Power Purchase Agreements 31,199 14,744 71,776 44,019
Fuel delivered to customers 27,857 17,002 90,331 39,332
Other 550 131 856 275
Total cost of revenue 175,000 135,632 423,984 254,164
Gross loss (31,078) (28,584) (83,547) (38,302)
Operating expenses:
Research and development 16,634 7,386 37,623 17,033
Selling, general and administrative 42,421 17,210 106,652 49,963
Change in fair value of contingent consideration 8,530 1,130 8,760 1,130
Total operating expenses 67,585 25,726 153,035 68,126
Operating loss (98,663) (54,310) (236,582) (106,428)
Interest (5,361) (17,248) (27,895) (42,407)
Other expense, net (50) (303) (318) (452)
Realized loss on investments, net (254) — (236) —
Change in fair value of equity securities (607) — (284) —
Gain on extinguishment of debt — — — 13,222
Loss on equity method investments (1,736) — (1,736) —
Loss before income taxes (106,671) (71,861) (267,051) (136,065)
Income tax benefit — 6,644 — 24,015
Net loss attributable to the Company $ (106,671) $ (65,217) $ (267,051) $ (112,050)
Preferred stock dividends declared — — — (26)
Net loss attributable to common stockholders $ (106,671) (65,217) $ (267,051) (112,076)
Net loss per share:
Basic and diluted $ (0.19) (0.18) $ (0.48) (0.34)
Weighted average number of common stock outstanding 574,520,806 371,010,544 551,894,779 330,949,265
Plug Power Inc. and Subsidiaries
Consolidated Statement of Operations
(In thousands, except share and per share amounts)
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
2021 2020 2021 2020
Operating Activities
Net loss attributable to the Company $ (267,051) $ (112,050)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation of long-lived assets 15,903 9,860
Amortization of intangible assets 1,095 835
Stock-based compensation 34,813 9,258
Gain on extinguishment of debt — (13,222)
Amortization of debt issuance costs and discount on convertible senior notes 2,371 12,183
Provision for common stock warrants 4,746 25,198
Income tax benefit — (24,015)
Impairment of long-lived assets 1,329 —
Loss on service contracts 9,586 25,110
Fair value adjustment to contingent consideration (8,760) 1,130
Net realized loss on investments 236 —
Lease origination costs (7,889) —
Change in fair value for equity securities 284 —
Loss on equity method investments 1,736 —
Changes in operating assets and liabilities that provide (use) cash:
Accounts receivable (89,329) (86,056)
Inventory (90,428) (57,615)
Prepaid expenses, and other assets (28,465) (4,956)
Accounts payable, accrued expenses, and other liabilities 28,992 41,125
Deferred revenue 42,330 16,709
Net cash used in operating activities (348,501) (156,506)
Investing Activities
Purchases of property, plant and equipment (91,384) (11,265)
Purchase of intangible assets — (1,638)
Purchases of equipment related to power purchase agreements and equipment related to fuel delivered to customers (17,900) (13,699)
Purchase of available-for-sale securities (1,862,951) —
Proceeds from sales and maturities of available-for-sale securities 1,105,874 —
Proceeds from sales of equity securities 21,780 —
Purchase of equity securities (169,713) —
Net cash paid for acquisition — (45,113)
Net cash used in investing activities (1,014,294) (71,715)
Financing Activities
Proceeds from exercise of warrants, net of transaction costs 15,445 —
Proceeds from public and private offerings, net of transaction costs 3,587,830 344,398
Payments of tax withholding on behalf of employees for net stock settlement of stock-based compensation (30,734) (9,218)
Proceeds from exercise of stock options 5,316 32,553
Proceeds from issuance of convertible senior notes, net — 205,098
Repurchase of convertible senior notes — (90,238)
Purchase of capped calls and common stock forward — (16,253)
Proceeds from termination of capped calls — 24,158
Principal payments on long-term debt (29,129) (27,845)
Proceeds from long-term debt, net — 99,000
Repayments of finance obligations and finance leases (20,413) (19,038)
Proceeds from finance obligations 53,447 47,568
Net cash provided by financing activities 3,581,762 590,183
Effect of exchange rate changes on cash (59) (90)
Increase in cash, cash equivalents and restricted cash 2,218,908 361,872
Cash, cash equivalents, and restricted cash beginning of period 1,634,284 369,500
Cash, cash equivalents, and restricted cash end of period $ 3,853,192 731,372
Supplemental disclosure of cash flow information
Cash paid for interest, net capitalized interest of $2.6 million $ 10,341 16,975
Summary of non-cash activity
Recognition of right of use asset - finance leases $ 16,961 $ —
Recognition of right of use asset - operating leases 65,083 25,857
Conversion of preferred stock to common stock — 43,058
Conversion of convertible senior notes to common stock 15,345 —
Accrued purchase of fixed assets, cash to be paid in subsequent period 8,832 —
2021 2020
Plug Power Inc. and Subsidiaries
Consolidated Statement of Cash Flows
(In thousands)
(Unaudited)
Nine months ended
September 30,